NFT lending remains strong despite the general downtrend in prices.
Arcade.XYZ, a non-fungible token (NFT) based lending protocol, collateralized $450,000 worth of NFT collection Ringers by Dmitri Cherniak on July 24.
The loan is structured with a $16,000 principal per NFT, and the current highest bid on the Ringers collection on Opensea is 8 wETH, equivalent to roughly $26,000.
The large loan comes as darlings of the generative art scene such as Ringers and Fidenzas continue to see their floor prices fall. Ringers and Fidenzas both eclipsed 100 ETH floor prices in 2021, and now sit at just 17 ETH and 32 ETH.
Despite the cool-off in sentiment and prices surrounding NFTs, the lending market continues to process consistent volume.
Some of the largest platforms, Blend, Gondi, NFTfi and Arcade process over $80 million in outstanding debt combined. The NFT lending market shattered volume records in Q1 2024, surpassing $2 billion in total volume.
Q1’s extraordinary lending volumes can be attributed to Blend’s Blast airdrop incentive, and the rise of Ordinals lending on Arcade.
The largest NFT loan belongs to NFT collector Gmoney’s CryptoPunk 8219 which was collateralized for $1 million on Gondi XYZ, and holds a current principal of $700,000. A far cry away from the claims made in mainstream media that “Your NFTs are Actually – Finally – Totally, Worthless”.
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